Economics & Finance / Macroeconomics / Inflation & Monetary Policy

The Great Inflation Mystery: Why Prices Didn't Crash After the 2008 Crisis

After the 2008 financial crisis, unemployment skyrocketed. According to the classic economic rulebook—the Phillips Curve—this should have caused prices to plummet in a wave of 'disinflation.' But something strange happened: prices barely budged. This video tackles one of modern macroeconomics' biggest puzzles: the case of the missing disinflation. We'll break down why the old models failed, examine the real data that defied all expectations, and uncover the hidden forces—like anchored inflation expectations and globalized supply chains—that keep prices stubbornly stable even during deep recessions. By the end, you'll understand a critical flaw in traditional economic thinking and see why central banks' predictions sometimes miss the mark.